Cliff Banks - The Banks Report

DealerTire to Acquire Dent Wizard

January 6, 2020 — Dealer Tire announced this morning it is acquiring Dent Wizard in what is the first big M&A announcement this year.

Dealer Tire, which was acquired by Bain Capital in 2018 in a deal rumored to be in the $2.5 billion range, says in a press release the acquisition of Dent Wizard “will create the leading aftersales dealer services platform in North America.”

With more than 8,000 dealership customers, Dealer Tire is the leading tire replacement supplier to automotive dealerships in North America. It also serves OEMs in both the U.S. and China.

Founded in 1983, Dent Wizard has grown to more than 7,000 customers, including dealerships, body shops, rental agencies, and auto auction companies providing paintless dent repair, minor wheel and paint refinishing, interior repair and key replacement, in-transit repair, hail, and catastrophe services, as well as related F&I products.

The company had been part of Cox Enterprises’s Manheim division until 2010 when it was acquired by H.I.G. Capital, who then sold it to Gridiron Capital in 2015.

Dent Wizard was rumored to have been close to a sale in 2017, but the deal was never announced.

The pending acquisition from Gridiron should close in the first quarter of this year. Terms have not been disclosed. Dent Wizard will continue to operate independently under the leadership of its existing management team headed by CEO Mike Black.

Jefferies LLC (which has a strong presence in the automotive aftermarket space) and Robert W. Baird & Co. acted as financial advisors to Dent Wizard, with Benesch, Friedlander, Coplan & Aronoff LLP serving as legal counsel.

J.P. Morgan Securities LLC provided financial advisory services to Dealer Tire, with legal counsel provided by Debevoise & Plimpton LLP and Kirkland & Ellis LLP.

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